Fusion Capital has announced the appointment of Peter Mugendi as chief executive officer of Remu Microfinance Bank, a year-and-a-half after the PE took a stake in the financier.
The appointment revealed on Thursday awaits CBK approval. Lydia Kibaara remains general manager.
The move comes after the March 2013 investment in which Fusion took up 25 per cent equity in the bank.
Mr Mugendi is a former chief executive officer of the World Vision Kenya-backed microfinance institution KADET Ltd and also founded Zaka Trust and Zaka International.
“We will look to incorporate new electronic banking technology and raising some additional capital through a planned rights issue,” said Mr Mugendi following his appointment.
The Central Bank licensed Remu as a deposit-taking microfinance in 2011. While Fusion did not give the exact amount involved in the acquisition, the deal fell within its criteria of investing in deals sized between $1 million (Sh87 million) and $5 million (Sh433 million) in both debt and equity.
Remu, whose main target market is the SME lending, currently has three branches in Nairobi, Meru and Maua and plans to raise funds to expand the network to 30.
Other than Remu, Fusion Capital has also invested in GAL Baking Services, hospitality and catering firm San Valencia and Zetech College.